Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 111/2/17

10 November 2005

Dear Sirs,

Commercial Information Circular No. 463/2005

US/Mainland Memorandum of Understanding on Textiles

The US and the Mainland signed a Memorandum of Understanding concerning Trade in Textile and Apparel Products (MOU)¹ (Annex A) (pdf format) on 8 November 2005 to set out the arrangements for Chinese-origin textiles and clothing (T&C) products to import into the US from 2006 to 2008. 

2. For traders' easy reference, some essential information of the MOU is set out as follows:

1. Term

• From 1 January 2006 to 31 December 2008.
  

2. Product Coverage and quota levels

• A total of 21 groups involving 34 categories of products are covered by the MOU. For details, please refer to Annex B (pdf format).

3. Visa Arrangement 

• For the purpose of charging shipments against the import quota level, the US and the Mainland would establish an electronic visa system by which the Mainland will issue an Electronic Visa Information System (ELVIS) transmission for each T&C shipment covered by the MOU. The US Customs would not release goods unless and until an ELVIS transmission is received. 

4. Flexibility Provisions

• Quota limit during a particular year could be increased by carryover (i.e. borrowing quotas from the previous year) and/or carryforward (i.e. borrowing quotas from the following year. Total carryover and carryforward must not exceed 3% with carryover limited to 2%. There would be no carryover in 2006 and no carryforward in 2008.

5. Future safeguard actions

• The US would not impose safeguard quotas and request consultations with the Mainland pursuant to Paragraph 242 of the "Report of the Working Party for the Accession of China to the World Trade Organization" with respect to: - 
  • products that were integrated into "the General Agreement on Tariffs and Trade 1994" before 1 January 2002 (i.e. Stage Two integrated products); and 
  • products subject to import limits provided in the MOU. 
• For other products, the US would exercise restraint in taking safeguard actions. 

6. Enforcement

• The US and the Mainland would co-operate to prevent circumvention by transshipment, rerouting, false declaration concerning country (place) of origin etc. With evidence of circumvention, actual quantity of goods entered the US may be charged against the relevant quota level. 

3. Other than the T&C shipments for 2006-2008, paragraph 8 of the MOU also provides that the US would make entry arrangements for shipments that have been held up at the US ports due to the fill-up of the relevant safeguard quotas in 2005. 

ENQUIRIES

4. For enquiries about the content of this circular, please contact Miss S Y TANG at telephone number 2398 5405.

Yours faithfully,




(Ms Charmaine LO)
for Director-General of Trade and Industry

1. The signed copy of the MOU is available in the website of the Office of US Trade Representative at :
http://www.ustr.gov/assets/World_Regions/North_Asia/China/asset_upload_file91_8344.pdf

Electronic services for Production Notification and Certificate of Origin enable traders to make the relevant applications directly through their office computer faster and easier. Electronic service has now been extended to the submission of Cargo Manifests and Textiles Notifications. For details and enquiries, please call Tradelink at 2599 1700.

Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.